Conventional Loans Quiz

1. What is a conventional mortgage?

A mortgage insured by the FHA A mortgage not insured or guaranteed by the federal government A mortgage for veterans only A government-backed loan

2. What is the conforming loan limit for 2024?

$500,000 $726,200 $1,000,000 $350,000

3. What is the typical minimum down payment for a conventional loan?

0% 3% 20% 5%

4. When is PMI required on a conventional loan?

Always When down payment is less than 20% Only for first-time buyers When credit score is below 700

5. What is a conforming loan?

A loan that conforms to the borrower's needs A loan that meets Fannie Mae and Freddie Mac standards A loan with flexible terms A government-backed loan

6. What is the typical credit score requirement for a conventional loan?

500 620 or higher 580 700

7. What are Fannie Mae and Freddie Mac?

Government agencies that provide mortgages Government-sponsored enterprises that buy and sell mortgages Credit bureaus Insurance companies

8. Can you cancel PMI on a conventional loan?

No, PMI is permanent Yes, when LTV reaches 80% or below Only after 10 years Only by refinancing

9. What is a non-conforming loan?

A loan that doesn't meet Fannie Mae or Freddie Mac standards An illegal loan A government loan A loan without collateral

10. What is the debt-to-income ratio limit for conventional loans?

50% 43% is typical maximum 60% No limit

Quiz Results